| To: | Agency Directors and Personnel/Payroll Staff |
| Subject: | Paper Pay Stubs Printed for Employees on Direct Deposit |
| Sent Date: | 05/11/2009 |
I want to thank you for your input and feedback regarding the e-mail I sent to you on March 20, 2009, regarding the July implementation of Mandatory Direct Deposit. As a follow-up, my office is continuing to develop this policy while making changes to the paper pay stub (earnings statements) currently being received by employees who are on direct deposit.
By utilizing the online pay stub method of distribution, agencies and the SCO will substantially reduce the costs involved with purchasing special stock paper, printing, folding/sealing, and mailing costs associated with distributing the stubs to the employees.
If all state employees were to incorporate this change it would save an estimated $125,000 annually while providing important benefits for employees. It is estimated that the statewide savings for online pay stubs is $0.30 per employee per pay period. In fact, on the May 15 pay date, the SCO will have produced 2 million online pay stubs since October 2001.
In an effort to continue to reduce overall state expenditures, beginning with the June 12, 2009 pay date, the Division of Statewide Payroll (DSP) will no longer print the paper pay stubs for employees participating in direct deposit. As a reminder, the most cost effective way for employees to receive their pay stub is through the Online Pay Stub application.
I understand that not all employees may have access to view their pay stub online; therefore, my office has designed a new report (F-444930 Net Pay Stub). This report lists pay stub information for each individual employee participating in direct deposit, but has not elected to view his/her stub online. Beginning with the May 15, 2009 pay date, the new ‘Net Pay Stub’ report will be distributed to the employing agencies via the Online Reporting application and will be added to the Final payroll reports (available the Friday before payday).
As mentioned above, the printed paper stubs will continue to be printed and distributed from DSP through the May 29, 2009 pay date. Beginning with the June 12, 2009 pay date, DSP will no longer print the paper stub. Therefore, the employing agency’s payroll staff (and those given access to the online report at the pay locations) will have the responsibility to print the new report and distribute the earnings statement directly to the employee.
Again, this new report will only be created for employees who have direct deposit, but are not viewing their pay stub online. For payroll staff, this means the employee will show up on the new report if their online pay stub indicator is equal to “N”.
Note: Employees on direct deposit will continue to receive a paper stub from DSP for Garnishments and Manual Checks, Void Checks, and Earnings Adjustments (IPOPS action MVA).
Employees not on direct deposit (receiving pay via warrant) will continue to receive their pay stubs (Earnings Statements) attached to the warrant.
I am providing the following attachments for your use in analyzing your agency’s policies, staffing, and processing changes/needs/requirements that may have been affected by this change:
‘Attachment A’ – E-mail for your agency to distribute to employees that explains the new process and how it affects them.
‘Attachment B’ – Spreadsheet listing all employees at your agency that will be affected by the above changes (employees who currently participate in direct deposit, but do not view their pay stubs on-line). Note: Currently there are no employees that fit this criteria.
‘Attachment C’ – Example of the new report (F-444930 Net Pay Stub)
Finally, I would again like to thank those agencies and employees who have utilized the efficiencies of direct deposit and online pay stubs.
If you have any questions, comments, or suggestions regarding this memo, please contact Brandon Woolf at bwoolf@sco.idaho.gov or at 334-3100.
 
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